XcYZ
02-10-2009, 08:53 AM
General Motors Corp., staying afloat with a $13.4-billion federal rescue package, announced this morning it is cutting its worldwide salaried workforce by 10,000 this year and temporarily reducing a majority of its U.S. white-collar workers' pay.
The Detroit automaker is racing to put together a long-term viability plan to present to the government Feb. 17. It has said it needs to cut its U.S. salaried and hourly workforce by as much as 31,500 people through 2012.
In the United States, GM's salaried workforce of 29,500 will be cut by about 3,400 by May 1.
The U.S. pay reductions will also go into effect May 1 and will be in effect through the end of the year.
The company said executive employees in the United States will have their base pay cut by 10% and "many other" salaried employees will see reductions ranging from 3% to 7%.
"These reductions will be made using GM separation programs and policies which provide for severance payments, benefit contributions and outplacement assistance," the company said in a statement.
"These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability," the statement said.
It noted that the company had outlined the need for reductions in its plan to Congress on Dec. 2.
"The announcement this week begins implementation of this aspect of the plan," GM said.
http://www.freep.com/article/20090210/BUSINESS01/90210022/General+Motors+to+cut+10+000+salaried+jobs
The Detroit automaker is racing to put together a long-term viability plan to present to the government Feb. 17. It has said it needs to cut its U.S. salaried and hourly workforce by as much as 31,500 people through 2012.
In the United States, GM's salaried workforce of 29,500 will be cut by about 3,400 by May 1.
The U.S. pay reductions will also go into effect May 1 and will be in effect through the end of the year.
The company said executive employees in the United States will have their base pay cut by 10% and "many other" salaried employees will see reductions ranging from 3% to 7%.
"These reductions will be made using GM separation programs and policies which provide for severance payments, benefit contributions and outplacement assistance," the company said in a statement.
"These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability," the statement said.
It noted that the company had outlined the need for reductions in its plan to Congress on Dec. 2.
"The announcement this week begins implementation of this aspect of the plan," GM said.
http://www.freep.com/article/20090210/BUSINESS01/90210022/General+Motors+to+cut+10+000+salaried+jobs